Personal Bankruptcy Archives

Bankruptcy can be hard to understand on several levels. There is the legal aspect to federal bankruptcy law, which is complex for non-attorneys to follow; there is also the question of -- other than elimination of some debts through discharge -- what its real impact is on the lives of those who experience it. Some studies suggest, though, that you should think carefully about the long-term consequences of bankruptcy before you elect to use it as a remedy.

The ultimate goal of a personal bankruptcy is to see that debts subject to the bankruptcy petition are discharged, meaning that creditors can no longer pursue the debtor for payment. The process of getting debts discharged varies depending on the type of bankruptcy involved. Chapter 7 discharges usually takes place shortly after the expiration of deadlines for creditors to challenge it; this usually takes place about four months after the filing of the petition for bankruptcy. Chapter 13 discharges, on the other hand, typically take longer because of the duration of the payment plan, which can take three to five years to complete. The court ordinarily grants the discharge shortly after the debtor makes all of the payments provided for under the payment plan.

What cellphones have done for the rest of us have made them the bane of the existence of the debt collection industry. Under the Telephone Consumer Protection Act of 1991, automated calls, or “robocalls,” made for collection purposes to cellphones were prohibited. But that inconvenience may soon be cured for debt collectors.

There are a lot of stigmas and negativities surrounding bankruptcy, painted by the media’s relentless crucifixion of celebrities and individuals who are in the lime-light that file. Bankruptcy is far more common than most people in Pennsylvania think, with an estimated 1.25 million Americans estimated to file this year alone. This number sounds staggering, but it has decreased from last year.

For quite some time, bankruptcy has been flashing across the headlines of newspapers throughout the nation. From major enterprises to low income families within Pennsylvania, bankruptcy does not discriminate in this struggling economy. Data has shown that many families that are at or below the poverty level are close to being in a situation where filing for bankruptcy would be necessary. Individual bankruptcy is often utilized.

Personal bankruptcy is more common in Pennsylvania today, even after Congress passed legislation to make it more difficult to qualify. The fact that so many people are unable to pay off their debts is alarming. Some may wonder why most are choosing to file for bankruptcy to begin with. Here are some of the main reasons why people are filing for bankruptcy.

If you live in Pittsburgh, there’s a good chance you are a Steelers fan. Some fans even idolize the larger-than-life figures that have had a “Terrible Towel” waved their way. But with the larger-than-life talent come larger-than-normal salaries. Which lead to larger-than-normal lifestyles. Which may lead to larger-than-normal debts. Which may lead to bankruptcy court.

A struggling economy can create financial challenges that may leave you with unpaid bills at the end of the month. Unexpected life changes, such as unemployment, serious illness or injury, can cause medical expenses and credit card debt to accumulate until you are in desperate need of debt relief.

We recently published a blog post which addressed whether it is a requirement to hire a lawyer to assist with a bankruptcy case. We said that, while there is no legal requirement to have an attorney assist with the proceedings, the bankruptcy process can involve issues that may be confusing to the average person. A recent Pennsylvania case is a good illustration.

Doing something on your own, from building a backyard deck to working your way through school can be one of the greatest senses of achievement that a person can realize, even if it means overcoming hurdles and weathering adversity before the reaching the goal. Most any do-it-yourself person knows, though, that before getting started it is helpful if not necessary to ask questions meant to explore whether the endeavor is really something he or she can take all the way to a successful conclusion. If the answers to these questions are negative, there is nothing wrong with calling on professional assistance instead of risking an unwanted result.

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